Bitget plans Thai crypto exchange acquisition weeks after $388M hack

Crypto exchange Bitget has announced plans to acquire Thailand’s GMO-Z.com Cryptonomics, seeking to expand its Southeast Asia footprint weeks after a major hack impacting its hot and warm wallets.

The proposed transaction involves BTGT Management (Thailand), a company in which Bitget says it holds an interest, according to an announcement shared with Cointelegraph. The acquisition will allow Bitget to introduce its trading platform to Thai users.

“Thailand is an important part of Southeast Asia’s digital asset landscape, and this acquisition gives us a great opportunity to establish local operations in a thriving country,” said Bitget CEO Gracy Chen.

GMO Internet disclosed the proposed sale to BTGT Management in a Sept. 24 filing, targeting completion for Oct. 31. Bitget’s announcement identifies its involvement in the transaction.

The company declined to comment on how much interest in BTGT Management the company holds and the financial and ownership terms of the proposed acquisition.

GMO-Z.com Cryptonomics operates Z.com EX, which launched in February 2021. Thailand’s Securities and Exchange Commission lists the company among its licensed digital asset exchange operators.

Related: Thailand crypto ETFs may see slow start despite new rules: CoinShares

Completion remains subject to regulatory approval and other conditions.

Thai expansion comes weeks after hack

The proposed deal follows a Sept. 24 attack on Bitget’s hot and warm wallet infrastructure. In its account of the breach, Bitget said approximately $388 million was affected after attackers exploited a vulnerability in a third-party security product and issued fraudulent withdrawal commands.

Bitget said customer account balances were unaffected and that it completed the phased restoration of withdrawals on Oct. 2.

On Oct. 17, Bitget also announced plans to discontinue services for certain users, describing the move as a “one-off exercise.”

Bitget’s terms of use, updated Oct. 16, list Russia, Belarus and Kazakhstan among its prohibited jurisdictions. Thailand is also listed as a prohibited jurisdiction, although the proposed acquisition could provide Bitget with a route to serving the market through a locally licensed operator.